TSG – Mixed market bag…

Dear Trader,

TSG Stock Market Letter
Week Ending July 11, 2008
Topics Discussed This Week:

* Stock performances mixed amid deteriorating credit news
* Inflationary pressure continues to mount
* First earnings reports for Q2-08 show more bad news
* Pre-election period on track to make history (of the unimpressive kind)

It was a week of more you-know-what … Dear Trader,

TSG Stock Market Letter
Week Ending July 11, 2008
Topics Discussed This Week:

* Stock performances mixed amid deteriorating credit news
* Inflationary pressure continues to mount
* First earnings reports for Q2-08 show more bad news
* Pre-election period on track to make history (of the unimpressive kind)

It was a week of more you-know-what hitting the fan for
credit markets as IndyMac, the second largest federally
insured finance company, was seized by regulators. To make
matters worse, more insolvency rumors circulated about Fannie
Mae and Freddie Mac that guarantee approximately half of the
$12 trillion in mortgages across the country. But it spite of
this fact stocks attempted to stage a comeback with mixed
success as the Dow Industrials, S&P500 and Nasdaq Composite
again lost ground for the fourth consecutive week. But in the
bigger picture, more indexes broke key support even though many
are extremely oversold.

According to one rather somber analyst interviewed on Bloomberg
this week, a big reason why stocks have held up in spite of
worsening credit news is that sovereign wealth funds have been
on the long side of the market presumably to take advantage of
seemingly attractive valuations. But this strategy will backfire
if we are in a true bear market and asset bubbles, especially
in real estate and credit, continue to implode.

So what is the chance that we are at a asset bubble bottom?

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To read this week’s STOCK letter, please go to
http://tradesystemguru.com/content/blogcategory/34/68/
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To read Matt Caruso’s INTERMARKET REPORT, please see
http://tradesystemguru.com/content/blogcategory/35/69/
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And if you haven’t seen it yet, be sure to read our
Mid-Year Market Roundup now available free at
http://tradesystemguru.com/content/blogcategory/47/81/

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